Report: Private-sector revenue into state coffers down $109 million

A recent report by the Commission on Government Forecasting and Accountability (COGFA) shows a continuous decline in cash flows to Illinois from the private sector.

Now that the first month of the fiscal year is completed,
more goals are set in place to ensure better cash flows to the state.

As of July 2016, there is a $109 million decline in general
funding -- a 4.8 percent drop from July 2015. The report said one of the main reasons that the COGFA
is reporting a decline in cash flows is because there are fewer Illinois residents
declaring all income taxes owed.

Income tax revenues are declining each year. In recent
reports, personal income taxes dropped by $77 million while corporate income
tax revenues saw a $35 million decrease.

There is a shortage in business revenue
throughout the U.S., which also has affected Illinois' private
sector. The nation saw a decline in inventories sent out by businesses and a drop in business spending on nonresidential fixed investments, coupled with the crippling U.S. economy.

Business overseas also plays a major role in the declining
cash flow in the state. In the past year, China was hit with an economic downturn in many key areas. In addition, the U.S. saw only 1.2 percent growth in gross domestic product.

If revenue numbers continue to drop at the same rates,
Illinois will face its worst annual performance since 2009, when the nation was
reaching the end of a recession. At that time, the economy saw a 2.8 percent
decline in revenue.

The state saw a major decline in population in recent years. Fewer people in a state can lead to a decline in revenue, as the tax base shrinks.

"People are leaving Illinois
because we rank near the bottom in job growth in the Midwest and have among the
highest property taxes in America," Catherine Kelly, a spokeswoman for Gov.
Bruce Rauner, wrote in an email to the Chicago Tribune in March.
"We have to make structural changes in Illinois to ensure talented people
— many of whom run businesses — stay in Illinois to help grow the economy and
improve our state's future."

Illinois resident Richard
Morton said he is leaving the state to start a new life in Panama City Beach,
Florida.

“I used to enjoy Illinois and the
area," Morton said. "But every day, there's a reason to not want to stay
here. Between (GOP Gov. Bruce) Rauner and (House Speaker Michael) Madigan (D-Chicago), how will
the state ever fix its pension problem? To me, it seems unfixable, and I don't
want to have to pay for it."

The state’s decline in population
contributed to a lot of the drops in revenue, as residents find greener job pastures elsewhere.

Michael Lucci, vice president of
policy at the Illinois Policy Institute, said he has seen more
Illinois residents move to other Midwestern states in search of better jobs.

"We talk opportunity all the
time," Lucci said. "If you're moving to California, you might be a tech worker, or you might
be someone who likes sunshine. But when you see Illinois
losing people to every Midwestern state, you know it's not weather. People are
moving for economic reasons."

The job market is simply stronger in
other states, so Illinois is working on a plan to change what the state has to
offer in the work force.

Census data reports that more than
100,000 residents left the state in 2015. COGFA economists predict that Illinois’ revenue will
continue to decline, given these circumstances.